Chapter 34. Chairman of Yuseong Group (4)

Large corporations receive parts and materials from multiple suppliers to lower prices through competition and to prepare for any unforeseen circumstances. However, there was no alternative to the EUV equipment used in the lithography process.

It would not be pleasant to be dependent on a single company's technology. Therefore, various technologies such as NIL and DSA have been under development, but so far, there have been no significant results. But what if it were possible to transfer circuit patterns using a non-contact method?

Perhaps it could replace the EUV method?

Suddenly, his interest began to grow.

"What did you say the debt scale was?"

"The principal and interest of corporate bonds and bank loans amount to 380 billion won. The estimated compensation to YMCT is around 1500 billion won."

The executives made expressions as if they were clicking their tongues. Given the asset size, it was like the navel was bigger than the belly.

If they were to acquire the company, they might have to pay this off.

President Jo Joon-ho said,

"It seems that a Singaporean company called XRT Semicon is showing interest in acquiring it."

"Isn't XRT Semicon a fabless company? Do they have the financial power for that?"

"There are rumors that they have ties with CMIC."

Yoo Jae-ho slightly frowned.

"Do you mean there's Chinese capital behind them?"

"Yes. Currently, the largest shareholder is a Hong Kong-based private equity fund, Big Tower Capital, which primarily invests in semiconductor companies."

Chinese companies are actively engaging in M&A of global semiconductor companies, and it is an open secret that the Chinese government is supporting them.

XRT Semicon's founder, Jackie Huang, is a Chinese expatriate. Given that 70% of Singaporeans are of Chinese descent, it's not unusual, but he is known to have close ties with Chinese Communist Party officials.

'Is China behind XRT Semicon?'

Currently, China's semiconductor technology is estimated to be about 3 years behind in manufacturing and 2 years behind in design. This gap is significant in the high-tech industry.

However, the situation is not one to be complacent about. Until last year, China was estimated to be 5 years behind in manufacturing and 3 years behind in design. In just one year, the gap has significantly narrowed.

The amount of money the Chinese government is pouring into the semiconductor industry is beyond imagination. Despite U.S. sanctions, China's semiconductor production has increased at an incredible rate.

The only consolation is that they haven't been able to touch advanced processes, but how long will that last?

Chinese semiconductor companies have not been able to import a single EUV machine due to U.S. sanctions. Therefore, they have not spared investment in developing alternative technologies.

Yoo Jae-ho recalled what Han Mireu had said.

'She said that all the technologies in use today were initially thought to be impossible.'

What about this technology?

It's unclear how useful the technologies Dongwoo Precision possesses would be to Yuseong Electronics, but they would certainly be useful to CMIC.

Can we just sit and watch CMIC take the technology?

Yoo Jae-ho thought deeply.

'If Dongwoo Precision falls into Chinese hands and NIL becomes the future technology standard, what then?'

Perhaps we could be caught off guard by the Chinese companies we thought were lagging behind.

Of course, it could be an overreaction. Thinking this way might mean we have to acquire every company in the market.

Yuseong Electronics entered the semiconductor industry in the late 1970s. In a market already dominated by Japanese and American giants, Yuseong Electronics built itself from the ground up.

Every step was a series of choices.

Memory or non-memory, DDR or Rambus, stack method or trench method, and so on.

If even one of these choices had been wrong, there would be no Yuseong Electronics today.

Not acquiring Dongwoo Precision won't cause immediate problems.

'But what if this is the missing nail?'

A single nail can cause the loss of a horse, and the loss of a horse can cause the fall of a great kingdom.

There's no law that says Yuseong Electronics won't face the same fate.

The executives gathered in the meeting room waited in silence for the chairman to speak. The decision and the responsibility that comes with it are his.

That's what being a chairman means.

After finishing his thoughts, Yoo Jae-ho spoke.

"Secretly meet with the management of Dongwoo Precision and proceed with the acquisition."

* * *

[XRT Semicon Shows Interest in Acquiring Dongwoo Precision]

[Will Dongwoo Precision Avoid Delisting?]

[Huge Debt and Compensation Are Problems. Acquisition Expected to Face Difficulties]

[XRT Semicon: Nothing Decided Yet...]

Small shareholders who read the news couldn't hide their excitement.

- What does XRT Semicon do? Am I the only one who doesn't know?

- Please, just buy it!

- But is it okay to let a foreign company buy it?

- Like with SsangYong Motors, will they just suck out the technology and spit it back?

- Haha, does Dongwoo Precision even have technology worth sucking out?

- What can you expect from a KOSDAQ company's technology?

- But it would be okay if a Singaporean company buys it.

- As long as it's not a Chinese company!

- Whoever buys it, please save us T_T

- There's someone on the 20th floor! Send a rescue team!

- What kind of person would go up there? The rescue team might fall too.

- Please, just don't delist us DDD

As the news spread that XRT Semicon would enter negotiations with the creditors, the price of Dongwoo Precision's corporate bonds began to rise. Bonds that had fallen to 10% of their face value had now risen to 30%.

Most experts predicted a high possibility of XRT Semicon acquiring Dongwoo Precision. However, an unexpected piece of news came out in this situation.

* * *

Director Liu Wuning.

He is a professor at Tsinghua University, the top university in China, and the director of the China Semiconductor Research Institute, leading China's semiconductor industry rise.

Under his leadership, the Chinese government, universities, and companies have collaborated to develop technology and engage in successive M&A.

China, a planned economy that feeds 1.5 billion people, has caught up with or surpassed advanced countries in high-tech industries such as electric vehicles, drones, communication equipment, and aerospace.

However, semiconductors, the foundation of the industry, are a significant weakness in the Chinese economy.

Therefore, China declared its semiconductor rise and began investing to achieve self-sufficiency in semiconductors.

To this end, semiconductor experts in China formulated a thorough strategy and proceeded with R&D and M&A.

However, a problem arose.

The U.S. put the brakes on.

The U.S. announced that semiconductors made with U.S. technology must follow U.S. government sanctions, claiming that China's semiconductor rise could threaten U.S. security.

But are there any semiconductors in the world that are not made with U.S. technology?

If the U.S. were to declare a complete export ban, the Chinese economy would dry up.

A complete export ban on all semiconductors to a specific country is essentially a declaration of war. Therefore, the U.S. Department of Commerce designated certain companies as off-limits and controlled materials, parts, and equipment to pressure China.

It was like drawing a clear line and warning not to cross it.

The U.S. clearly aimed to undermine China's competitiveness in high-tech fields, which dealt a significant blow to China's semiconductor rise.

Immediately, M&A and technology transfer were halted.

Feeling a sense of crisis, China accelerated its semiconductor rise.

President Lin Weixiang emphasized the need for semiconductor self-sufficiency, saying, "Semiconductors are the heart of the Chinese economy. We cannot depend on external sources for our heart."

Efforts have borne fruit, with China's semiconductor production increasing by double digits annually, and the localization of materials, parts, and equipment progressing steadily.

The problem, as always, was the advanced processes.

CMIC, with the support of the Chinese government, began construction of a 7nm factory, but could not obtain the necessary equipment.

PSMC and Yuseong Electronics were competing in the 5nm process, while CMIC's latest process was still at 14nm, several generations behind.

The main reason was the inability to secure lithography equipment.

'The U.S. will not allow the export of EUV equipment. To advance Chinese semiconductors to advanced processes, we need to develop the NIL method.'

Director Liu Wuning began searching for the necessary companies.

During this search, a mid-sized Korean company caught his eye. After completing the analysis of Dongwoo Precision, Director Liu Wuning strongly advocated:

"This is a company that China's semiconductor rise cannot do without. We must acquire it by any means necessary!"

From then on, the operation to acquire Dongwoo Precision began.

Through YMCT, they signed a supply contract,诱导技术投资，并在原型阶段催促交货。

幸运的是（或不幸的是），交付的设备部件出现了缺陷。YMCT故意停产并扩大了损失。

因此，Dongwoo Precision不仅生产中断，还面临巨额赔偿金。

恰逢韩国因Premius事件暂停发行公司债券。Dongwoo Precision因发行公司债券失败而进入企业重组程序。

这是一个绝佳的机会。

如果中国公司收购，肯定会受到制约。

因此，他们动用了新加坡公司XRT Semicon。既然Dongwoo Precision自身重组无望，XRT Semicon可以轻松将其收入囊中。

XRT Semicon的管理层与Dongwoo Precision的管理层接触，调整了条件。表面上是讨论债务减免，但实际目的另有他图。

即技术转移。

收购后，他们计划将技术转移到CMIC，并向技术人员和研究人员提供两到三倍的薪资，以吸引他们跳槽。

“一切都在按计划进行。”

然而，发生了谁也预料不到的事情。

Yuseong Electronics突然表示要收购！

听到这个消息，刘无宁主任惊讶地喊道：

“Yuseong Electronics为什么！”

XRT Semicon的总裁Jackie Huang说：

[据说是会长柳在浩亲自指示的。副会长权赫俊正带着研究人员参观生产设施和研究所。]

Yuseong Electronics作为中国半导体企业的长期竞争对手，一直密切关注着。

Dongwoo Precision的技术对CMIC至关重要，但对Yuseong Electronics来说并没有多大用处。无论如何想，Yuseong Electronics都没有理由出手。

Yuseong Electronics已经实现了半导体的垂直整合，会长柳在浩对并购并不积极。

如果他有想法，早就表现出兴趣了。但在这个时间点突然出手？

肯定有什么契机。

“这几天到底发生了什么？”

刘无宁主任内心轻视柳在浩。虽然前会长柳明勋另当别论，但他的儿子柳在浩在他看来并不值得重视。

Yuseong Electronics迟早会在中国半导体崛起面前屈服！

……没想到会遭受如此意外的打击。

无论如何，既然Yuseong Electronics出手，收购基本无望。中国半导体崛起失去了一个不可或缺的重要企业。

刘无宁主任怒不可遏。

“为什么！为什么柳在浩会长会出手！？”